SUPPLEMENT TO THE
FIDELITY(registered trademark) SELECT PORTFOLIOS(registered trademark)
APRIL 29, 1999
STATEMENT OF ADDITIONAL INFORMATION
REGIONAL BANKS PORTFOLIO HAS BEEN RENAMED BANKING PORTFOLIO. ALL
REFERENCES TO REGIONAL BANKS PORTFOLIO THROUGHOUT THIS SAI SHOULD BE
REPLACED WITH BANKING PORTFOLIO.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH STOCK
FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL
INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND
NATURAL RESOURCES PORTFOLIO) FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental limitation (2)).
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except (a) by lending money (up to 15% of
the fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH OF
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES
PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL
RESOURCES PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 3.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental limitation (2)).
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 15% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR MONEY
MARKET PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 5.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 15% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser. (This
limitation does not apply to purchases of debt securities or to
repurchase agreements.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
SOURCES OF CREDIT OR LIQUIDITY SUPPORT. Issuers may employ various
forms of credit and liquidity enhancements, including letters of
credit, guarantees, puts, and demand features, and insurance provided
by domestic or foreign entities such as banks and other financial
institutions. FMR may rely on its evaluation of the credit of the
liquidity or credit enhancement provider in determining whether to
purchase a security supported by such enhancement. In evaluating the
credit of a foreign bank or other foreign entities, FMR will consider
whether adequate public information about the entity is available and
whether the entity may be subject to unfavorable political or economic
developments, currency controls, or other government restrictions that
might affect its ability to honor its commitment. Changes in the
credit quality of the entity providing the enhancement could affect
the value of the security or a fund's share price.
THE FOLLOWING INFORMATION FOUND IN THE "TRUSTEES AND OFFICERS"
SECTION BEGINNING ON PAGE 51 HAS BEEN REMOVED.
LEONARD M. RUSH (53), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity
funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994)
and Chief Financial Officer of Fidelity Brokerage Services, Inc.
(1990-1993).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 51.
NED C. LAUTENBACH (55), Member of the Advisory Board (1999), has
been a partner of Clayton, Dubilier & Rice, Inc. (private equity
investment firm) since September 1998. Mr. Lautenbach was Senior Vice
President of IBM Corporation from 1992 until his retirement in July
1998. From 1993 to 1995 he was Chairman of IBM World Trade
Corporation. He also was a member of IBM's Corporate Executive
Committee from 1994 to July 1998. He is a Director of PPG Industries
Inc. (glass, coating and chemical manufacturer), Dynatech Corporation
(global communications equipment), Eaton Corporation (global
manufacturer of highly engineered products) and ChoicePoint Inc. (data
identification, retrieval, storage, and analysis).
THE FOLLOWING INFORMATION REPLACES THE COMPENSATION TABLE FOUND IN
THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 53.
The following table sets forth information describing the
compensation of each Trustee and Member of the Advisory Board of each
fund for his or her services for the fiscal year ended February 28,
1999, or calendar year ended December 31, 1998, as applicable.
Compensation Table
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Gary Burkhead ** Ralph F. Cox
FUNDA
Air TransportationB $ 0 $ 0 $ 0 $ 36
AutomotiveB $ 0 $ 0 $ 0 $ 20
BiotechnologyB $ 0 $ 0 $ 0 $ 194
Brokerage and Investment $ 0 $ 0 $ 0 $ 252
ManagementB
Business Services and $ 0 $ 0 $ 0 $ 17
OutsourcingB
ChemicalsB $ 0 $ 0 $ 0 $ 17
ComputersB $ 0 $ 0 $ 0 $ 316
Construction and HousingB $ 0 $ 0 $ 0 $ 28
Consumer IndustriesB $ 0 $ 0 $ 0 $ 26
Cyclical IndustriesB $ 0 $ 0 $ 0 $ 1
Defense and AerospaceB $ 0 $ 0 $ 0 $ 20
Developing CommunicationsB $ 0 $ 0 $ 0 $ 96
ElectronicsB $ 0 $ 0 $ 0 $ 761
EnergyB $ 0 $ 0 $ 0 $ 49
Energy ServiceB $ 0 $ 0 $ 0 $ 241
Environmental ServicesB $ 0 $ 0 $ 0 $ 7
Financial ServicesB $ 0 $ 0 $ 0 $ 216
Food and AgricultureB $ 0 $ 0 $ 0 $ 80
GoldB $ 0 $ 0 $ 0 $ 73
Health CareB,C,D $ 0 $ 0 $ 0 $ 843
Home FinanceB $ 0 $ 0 $ 0 $ 487
Industrial EquipmentB $ 0 $ 0 $ 0 $ 15
Industrial MaterialsB $ 0 $ 0 $ 0 $ 6
InsuranceB $ 0 $ 0 $ 0 $ 39
LeisureB $ 0 $ 0 $ 0 $ 98
Medical DeliveryB $ 0 $ 0 $ 0 $ 55
Medical Equipment and SystemsB+ $ 0 $ 0 $ 0 $ 5
MultimediaB $ 0 $ 0 $ 0 $ 44
Natural GasB $ 0 $ 0 $ 0 $ 18
Natural ResourcesB $ 0 $ 0 $ 0 $ 2
Paper and Forest ProductsB $ 0 $ 0 $ 0 $ 6
Precious Metals and MineralsB $ 0 $ 0 $ 0 $ 53
Regional BanksB $ 0 $ 0 $ 0 $ 439
RetailingB $ 0 $ 0 $ 0 $ 91
Software and Computer ServicesB $ 0 $ 0 $ 0 $ 191
TechnologyB $ 0 $ 0 $ 0 $ 240
TelecommunicationsB $ 0 $ 0 $ 0 $ 263
TransportationB $ 0 $ 0 $ 0 $ 10
Utilities GrowthB $ 0 $ 0 $ 0 $ 138
Money MarketB $ 0 $ 0 $ 0 $ 326
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 223,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones Donald J. Kirk Ned C. Lautenbach***
FUNDA
Air TransportationB $ 36 $ 36 $ 36 $ 36 $ 0
AutomotiveB $ 19 $ 20 $ 19 $ 20 $ 0
BiotechnologyB $ 191 $ 193 $ 192 $ 194 $ 0
Brokerage and Investment $ 248 $ 253 $ 251 $ 255 $ 0
ManagementB
Business Services and $ 17 $ 17 $ 17 $ 18 $ 0
OutsourcingB
ChemicalsB $ 17 $ 17 $ 17 $ 17 $ 0
ComputersB $ 311 $ 315 $ 313 $ 315 $ 0
Construction and HousingB $ 27 $ 28 $ 27 $ 28 $ 0
Consumer IndustriesB $ 26 $ 26 $ 26 $ 27 $ 0
Cyclical IndustriesB $ 1 $ 1 $ 1 $ 1 $ 0
Defense and AerospaceB $ 20 $ 20 $ 20 $ 20 $ 0
Developing CommunicationsB $ 94 $ 96 $ 95 $ 96 $ 0
ElectronicsB $ 751 $ 761 $ 756 $ 763 $ 0
EnergyB $ 49 $ 49 $ 49 $ 50 $ 0
Energy ServiceB $ 238 $ 242 $ 240 $ 243 $ 0
Environmental ServicesB $ 7 $ 7 $ 7 $ 7 $ 0
Financial ServicesB $ 213 $ 216 $ 214 $ 218 $ 0
Food and AgricultureB $ 79 $ 80 $ 79 $ 80 $ 0
GoldB $ 72 $ 72 $ 72 $ 73 $ 0
Health CareB,C,D $ 832 $ 842 $ 837 $ 848 $ 0
Home FinanceB $ 481 $ 488 $ 485 $ 493 $ 0
Industrial EquipmentB $ 15 $ 15 $ 15 $ 15 $ 0
Industrial MaterialsB $ 6 $ 6 $ 6 $ 6 $ 0
InsuranceB $ 38 $ 39 $ 39 $ 39 $ 0
LeisureB $ 96 $ 98 $ 97 $ 99 $ 0
Medical DeliveryB $ 54 $ 55 $ 55 $ 56 $ 0
Medical Equipment and SystemsB+ $ 5 $ 5 $ 5 $ 5 $ 0
MultimediaB $ 43 $ 44 $ 43 $ 44 $ 0
Natural GasB $ 18 $ 18 $ 18 $ 19 $ 0
Natural ResourcesB $ 2 $ 2 $ 2 $ 2 $ 0
Paper and Forest ProductsB $ 6 $ 6 $ 6 $ 6 $ 0
Precious Metals and MineralsB $ 52 $ 53 $ 53 $ 53 $ 0
Regional BanksB $ 433 $ 440 $ 437 $ 443 $ 0
RetailingB $ 90 $ 91 $ 91 $ 92 $ 0
Software and Computer ServicesB $ 188 $ 191 $ 189 $ 192 $ 0
TechnologyB $ 237 $ 240 $ 239 $ 240 $ 0
TelecommunicationsB $ 259 $ 263 $ 261 $ 265 $ 0
TransportationB $ 10 $ 10 $ 10 $ 10 $ 0
Utilities GrowthB $ 136 $ 138 $ 137 $ 138 $ 0
Money MarketB $ 322 $ 326 $ 323 $ 330 $ 0
TOTAL COMPENSATION FROM THE $ 220,500 $ 223,500 $222,000 $ 226,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Peter S. Lynch** William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen **
FUNDA
Air TransportationB $ 0 $ 36 $ 44 $ 36 $ 0
AutomotiveB $ 0 $ 20 $ 24 $ 20 $ 0
BiotechnologyB $ 0 $ 193 $ 237 $ 193 $ 0
Brokerage and Investment $ 0 $ 253 $ 309 $ 253 $ 0
ManagementB
Business Services and $ 0 $ 17 $ 21 $ 17 $ 0
OutsourcingB
ChemicalsB $ 0 $ 17 $ 21 $ 17 $ 0
ComputersB $ 0 $ 315 $ 385 $ 315 $ 0
Construction and HousingB $ 0 $ 28 $ 34 $ 28 $ 0
Consumer IndustriesB $ 0 $ 26 $ 32 $ 26 $ 0
Cyclical IndustriesB $ 0 $ 1 $ 2 $ 1 $ 0
Defense and AerospaceB $ 0 $ 20 $ 25 $ 20 $ 0
Developing CommunicationsB $ 0 $ 96 $ 117 $ 96 $ 0
ElectronicsB $ 0 $ 761 $ 931 $ 761 $ 0
EnergyB $ 0 $ 49 $ 60 $ 49 $ 0
Energy ServiceB $ 0 $ 242 $ 296 $ 242 $ 0
Environmental ServicesB $ 0 $ 7 $ 9 $ 7 $ 0
Financial ServicesB $ 0 $ 216 $ 264 $ 216 $ 0
Food and AgricultureB $ 0 $ 80 $ 98 $ 80 $ 0
GoldB $ 0 $ 72 $ 89 $ 72 $ 0
Health CareB,C,D $ 0 $ 842 $ 1,031 $ 842 $ 0
Home FinanceB $ 0 $ 488 $ 598 $ 488 $ 0
Industrial EquipmentB $ 0 $ 15 $ 18 $ 15 $ 0
Industrial MaterialsB $ 0 $ 6 $ 7 $ 6 $ 0
InsuranceB $ 0 $ 39 $ 48 $ 39 $ 0
LeisureB $ 0 $ 98 $ 120 $ 98 $ 0
Medical DeliveryB $ 0 $ 55 $ 67 $ 55 $ 0
Medical Equipment and SystemsB+ $ 0 $ 5 $ 6 $ 5 $ 0
MultimediaB $ 0 $ 44 $ 54 $ 44 $ 0
Natural GasB $ 0 $ 18 $ 23 $ 18 $ 0
Natural ResourcesB $ 0 $ 2 $ 3 $ 2 $ 0
Paper and Forest ProductsB $ 0 $ 6 $ 8 $ 6 $ 0
Precious Metals and MineralsB $ 0 $ 53 $ 65 $ 53 $ 0
Regional BanksB $ 0 $ 440 $ 539 $ 440 $ 0
RetailingB $ 0 $ 91 $ 112 $ 91 $ 0
Software and Computer ServicesB $ 0 $ 191 $ 233 $ 191 $ 0
TechnologyB $ 0 $ 240 $ 294 $ 240 $ 0
TelecommunicationsB $ 0 $ 263 $ 322 $ 263 $ 0
TransportationB $ 0 $ 10 $ 12 $ 10 $ 0
Utilities GrowthB $ 0 $ 138 $ 169 $ 138 $ 0
Money MarketB $ 0 $ 326 $ 396 $ 326 $ 0
TOTAL COMPENSATION FROM THE $ 0 $ 223,500 $ 273,500 $ 220,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
AGGREGATE COMPENSATION FROM A Thomas R. Williams
FUNDA
Air TransportationB $ 36
AutomotiveB $ 20
BiotechnologyB $ 193
Brokerage and Investment $ 253
ManagementB
Business Services and $ 17
OutsourcingB
ChemicalsB $ 17
ComputersB $ 315
Construction and HousingB $ 28
Consumer IndustriesB $ 26
Cyclical IndustriesB $ 1
Defense and AerospaceB $ 20
Developing CommunicationsB $ 96
ElectronicsB $ 761
EnergyB $ 49
Energy ServiceB $ 242
Environmental ServicesB $ 7
Financial ServicesB $ 216
Food and AgricultureB $ 80
GoldB $ 72
Health CareB,C,D $ 842
Home FinanceB $ 488
Industrial EquipmentB $ 15
Industrial MaterialsB $ 6
InsuranceB $ 39
LeisureB $ 98
Medical DeliveryB $ 55
Medical Equipment and SystemsB+ $ 5
MultimediaB $ 44
Natural GasB $ 18
Natural ResourcesB $ 2
Paper and Forest ProductsB $ 6
Precious Metals and MineralsB $ 53
Regional BanksB $ 440
RetailingB $ 91
Software and Computer ServicesB $ 191
TechnologyB $ 240
TelecommunicationsB $ 263
TransportationB $ 10
Utilities GrowthB $ 138
Money MarketB $ 326
TOTAL COMPENSATION FROM THE $ 223,500
FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1998 for
237 funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead
are compensated by FMR.
*** Effective October 14, 1999, Mr. Lautenbach serves as a Member
of the Advisory Board.
+ Estimated
A Compensation figures include cash, amounts required to be
deferred, and may include amounts deferred at the election of
Trustees. For the calendar year ended December 31, 1998, the Trustees
accrued required deferred compensation from the funds as follows:
Ralph F. Cox, $75,000; Phyllis Burke Davis, $75,000; Robert M. Gates,
$75,000; E. Bradley Jones, $75,000; Donald J. Kirk, $75,000; William
O. McCoy, $75,000; Gerald C. McDonough, $87,500; Marvin L. Mann,
$75,000; and Thomas R. Williams, $75,000. Certain of the
non-interested Trustees elected voluntarily to defer a portion of
their compensation as follows: Ralph F. Cox, $55,039; Marvin L. Mann,
$55,039; Thomas R. Williams, $63,433; and William O. McCoy,
$55,039.
B Compensation figures include cash, and may include amounts
required to be deferred and amounts deferred at the election of
Trustees.
C The following amounts are required to be deferred by each
non-interested Trustee: Ralph F. Cox, $379; Phyllis Burke Davis, $379;
Robert M. Gates, $379; E. Bradley Jones, $379; Donald J. Kirk, $379;
William O. McCoy, $379; Gerald C. McDonough, $443; Marvin L. Mann,
$379; and Thomas R. Williams, $379.
D Certain of the non-interested Trustees' aggregate compensation
from a fund includes accrued voluntary deferred compensation as
follows: Ralph F. Cox, $321, Health Care; William O. McCoy, $321,
Health Care; Marvin L. Mann, $263, Health Care; and Thomas R.
Williams, $321, Health Care.
THE FOLLOWING INFORMATION REPLACES THE "GROUP FEE RATE" AND
"EFFECTIVE ANNUAL FEE RATE" SCHEDULES FOR THE MONEY MARKET FUND FOUND
ON PAGE 57.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate
0 - $3 billion .3700% $ 1 billion .3700%
3 - 6 .3400 50 .2188
6 - 9 .3100 100 .1869
9 - 12 .2800 150 .1736
12 - 15 .2500 200 .1652
15 - 18 .2200 250 .1587
18 - 21 .2000 300 .1536
21 - 24 .1900 350 .1494
24 - 30 .1800 400 .1459
30 - 36 .1750 450 .1427
36 - 42 .1700 500 .1399
42 - 48 .1650 550 .1372
48 - 66 .1600 600 .1349
66 - 84 .1550 650 .1328
84 - 120 .1500 700 .1309
120 - 156 .1450 750 .1291
156 - 192 .1400 800 .1275
192 - 228 .1350 850 .1260
228 - 264 .1300 900 .1246
264 - 300 .1275 950 .1233
300 - 336 .1250 1,000 .1220
336 - 372 .1225 1,050 .1209
372 - 408 .1200 1,100 .1197
408 - 444 .1175 1,150 .1187
444 - 480 .1150 1,200 .1177
480 - 516 .1125 1,250 .1167
516 - 587 .1100 1,300 .1158
587 - 646 .1080 1,350 .1149
646 - 711 .1060 1,400 .1141
711 - 782 .1040
782 - 860 .1020
860 - 946 .1000
946 - 1,041 .0980
1,041 - 1,145 .0960
1,145 - 1,260 .0940
over - 1,260 .0920
</TABLE>
THE FOLLOWING INFORMATION REPLACES THE "GROUP FEE RATE" AND
"EFFECTIVE ANNUAL FEE RATE" SCHEDULES FOR THE STOCK FUNDS FOUND ON
PAGE 58.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate
0 - $3 billion .5200% $ 1 billion .5200%
3 - 6 .4900 50 .3823
6 - 9 .4600 100 .3512
9 - 12 .4300 150 .3371
12 - 15 .4000 200 .3284
15 - 18 .3850 250 .3219
18 - 21 .3700 300 .3163
21 - 24 .3600 350 .3113
24 - 30 .3500 400 .3067
30 - 36 .3450 450 .3024
36 - 42 .3400 500 .2982
42 - 48 .3350 550 .2942
48 - 66 .3250 600 .2904
66 - 84 .3200 650 .2870
84 - 102 .3150 700 .2838
102 - 138 .3100 750 .2809
138 - 174 .3050 800 .2782
174 - 210 .3000 850 .2756
210 - 246 .2950 900 .2732
246 - 282 .2900 950 .2710
282 - 318 .2850 1,000 .2689
318 - 354 .2800 1,050 .2669
354 - 390 .2750 1,100 .2649
390 - 426 .2700 1,150 .2631
426 - 462 .2650 1,200 .2614
462 - 498 .2600 1,250 .2597
498 - 534 .2550 1,300 .2581
534 - 587 .2500 1,350 .2566
587 - 646 .2463 1,400 .2551
646 - 711 .2426
711 - 782 .2389
782 - 860 .2352
860 - 946 .2315
946 - 1,041 .2278
1,041 - 1,145 .2241
1,145 - 1,260 .2204
over - 1,260 .2167
</TABLE>
SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1999 PROSPECTUS
Effective the close of business on December 20, 1999, shares of Select
Precious Metals and Minerals Portfolio will no longer be available for
purchase except through the reinvestment of dividends and other
distributions by shareholders of the fund on December 20, 1999.
PROPOSED REORGANIZATION. The Board of Trustees of Fidelity Select
Portfolios has unanimously approved an Agreement and Plan of
Reorganization ("Agreement") between Select Precious Metals and
Minerals Portfolio and Select Gold Portfolio.
The Agreement provides for the transfer of all of the assets and the
assumption of all of the liabilities of Select Precious Metals and
Minerals Portfolio solely in exchange for the number of shares of
Select Gold Portfolio equal in value to the relative net asset value
of the outstanding shares of Select Precious Metals and Minerals
Portfolio. Following such exchange, Select Precious Metals and
Minerals Portfolio will distribute the Select Gold Portfolio shares to
its shareholders pro rata, in liquidation of Select Precious Metals
and Minerals Portfolio as provided in the Agreement (the transactions
contemplated by the Agreement referred to as the "Reorganization").
The Reorganization can be consummated only if, among other things, it
is approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Select Precious Metals and Minerals
Portfolio will be held on February 16, 2000, and approval of the
Agreement will be voted on at that time. In connection with the
Meeting, Select Precious Metals and Minerals Portfolio will be filing
with the Securities and Exchange Commission and delivering to its
shareholders of record a Proxy Statement describing the Reorganization
and a Prospectus for Select Gold Portfolio.
If the Agreement is approved at the Meeting and certain conditions
required by the Agreement are satisfied, the Reorganization is
expected to become effective on or about February 29, 2000. If
shareholder approval of the Agreement is delayed due to failure to
meet a quorum or otherwise, the Reorganization will become effective,
if approved, as soon as practicable thereafter.
In the event Select Precious Metals and Minerals Portfolio
shareholders fail to approve the Agreement, Select Precious Metals and
Minerals Portfolio will continue to engage in business as a registered
investment company and the Board of Trustees will consider other
proposals for the reorganization or liquidation of Select Precious
Metals and Minerals Portfolio.
REGIONAL BANKS PORTFOLIO HAS CHANGED ITS NAME TO "BANKING PORTFOLIO."
References in the Prospectus to "Regional Banks Portfolio" are each
hereby replaced by "Banking Portfolio" and references to "Regional
Banks" are each hereby replaced by "Banking."
The following information replaces similar information for "Banking
Portfolio" found in the "Fund Summary" section on page P-15:
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
The following information replaces the second paragraph for
"Environmental Services Portfolio" found under the heading "Principal
Investment Strategies" in the "Fund Basics" section beginning on page
P-46:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or distribution of products, processes, or services
related to waste management or pollution control. These companies may
include, for example, companies involved in the transportation,
treatment, or disposal of hazardous or other wastes; transforming
waste into energy; recycling; and remedial projects such as
groundwater and underground storage tank decontamination, asbestos
cleanup, and emergency cleanup response. They may also include
companies involved in the detection, analysis, evaluation, and
treatment of both existing and potential environmental problems such
as contaminated water, air pollution, and acid rain; companies that
provide sanitation or filtration equipment or services; companies
involved in the reduction of hazardous emissions or other pollution
reduction or prevention efforts; and companies that provide design,
engineering, construction, and consulting services to companies
engaged in waste management or pollution control.
The following information replaces the second paragraph for "Banking
Portfolio" found under the heading "Principal Investment Strategies"
in the "Fund Basics" section on page P-52:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans. These
companies may include, for example, state chartered banks, savings and
loan institutions, banks that are members of the Federal Reserve
System, and U.S. institutions whose deposits are not insured by the
federal government. In addition, these companies may offer merchant
banking, consumer and commercial finance, discount brokerage, leasing
and insurance.
EFFECTIVE NOVEMBER 1, 1999, the following information
replaces similar information found in the "Fund Management" section
beginning on page P-69:
Matthew Fruhan is manager of Food and Agriculture, which he has
managed since November 1999. Mr. Fruhan joined Fidelity in 1995 and
became an equity analyst in 1999 after receiving his MBA from Harvard
Business School in 1999.
Ian Gutterman is manager of Environmental Services, which he has
managed since November 1999. Mr. Gutterman joined Fidelity as an
equity analyst in 1999 after receiving his MBA from the University of
Chicago.
John Roth is manager of Utilities Growth, which he has managed
since November 1999. Mr. Roth joined Fidelity as an equity analyst in
1999 after receiving his MBA from MIT Sloan School of Management in
1999.
The following information replaces similar information found in the
"Fund Management" section beginning on page P-69:
Ramin Arani is an analyst and manager of Health Care, which he has
managed since August 1999. He also manages other Fidelity funds. Mr.
Arani joined Fidelity as a research associate in 1992.
Steven Calhoun is manager of Retailing, which he has managed since
August 1999. Mr. Calhoun joined Fidelity as a research analyst in
1994.
Douglas Nigen is manager of Automotive, which he has managed since
September 1999. Mr. Nigen joined Fidelity as a research analyst in
1997 after receiving his MBA from the University of Chicago.
Scott Offen is manager of Energy and Natural Resources,
both of which he has managed since September 199 9 . He
also manages another Fidelity fund. Since joining Fidelity in 1985,
Mr. Offen has worked as a research analyst and portfolio manager.
Shep Perkins is an analyst and manager of Medical Delivery, which he
has managed since August 1999. Mr. Perkins joined Fidelity as an
equity research associate in 1997.
John Porter is manager of Consumer Industries, which he has managed
since September 1999. He also manages another Fidelity fund. Mr.
Porter joined Fidelity as an analyst in 1995, after receiving his MBA
from the University of Chicago.
Dylan Yolles is manager of Software and Computer Services, which he
has managed since September 1999. Mr. Yolles joined Fidelity in 1997
as an equity analyst, after receiving a bachelor of arts degree in
1991 and an MBA in 1997, both from Stanford University.
Jonathan Zang is manager of Chemicals, which he has managed
since September 1999 . Mr. Zang joined Fidelity in 1997
as an equity analyst, after receiving his MBA from the University of
Chicago in 1997. Previously, he was an investment officer with
Hawaiian Trust Company, in Honolulu, from 1992 to 1995.
Christian Zann is an analyst and manager of Natural Gas, which he has
managed since August 1999. Mr. Zann joined Fidelity as an equity
research associate in 1996.
The following information replaces the fourth paragraph found in the
"Fund Distribution" section on page P-71:
Each stock fund's sales charge may be reduced if you buy directly
through Fidelity or through prototype or prototype-like retirement
plans sponsored by FMR or FMR Corp. The amount you invest, plus the
value of your account, must fall within the ranges shown below.
Purchases made with assistance or intervention from a financial
intermediary are not eligible for a sales charge reduction.
